Home Warranty Service Agreements, also referred to as home warranties or a systems and appliances Service Agreement, don’t serve just one side in a home sale transaction; they benefit both buyers and sellers. What are the mutual benefits of a Home Warranty Service Agreements for home buyers and sellers?
For a Home Warranty Service Agreements, there are many options when it comes to who benefits from the service. Let’s take a look at some of the mutual benefits.
So, What is a Home Warranty Service Agreement?
A 2-10 HBW Home Warranty Service Agreement helps homeowners reduce the overall cost of owning a home by protecting them against unexpected system and appliance breakdowns.
What Systems and Appliances Does This Kind of Home Warranty Service Agreement Cover?
A Home Warranty Service Agreement covers major systems and appliances that malfunction or break from normal wear and tear. Items such as air conditioning and heating units, refrigerators, ovens, dishwashers, garage door openers and electrical wiring will age over time, and expensive repairs are inevitable. A Home Warranty Service Agreement offers protection from these repairs.
How a Home Warranty Service Agreement Protects Home Sellers
A Home Seller Benefits on Several Different Levels
First, their home is covered during the selling process. That means that if a system or appliance turns up faulty during the inspection process, they can simply have the item repaired or replaced in advance of the sale. Secondly, Home Warranty Service Agreements are transferrable at the time a home changes hands and the costs can be included in the final sales price at closing, removing the burden from the home seller. However, even if the seller chooses to absorb the cost of the Home Warranty Service Agreement, they still benefit. Many studies have shown that homes with a Home Warranty Service Agreement sell several times faster than homes without a Home Warranty Service Agreement, and usually at a higher price.
How a Home Warranty Service Agreement Protects Home Buyers
A Home Buyer Gains Significant Peace of Mind from a Home Warranty Service Agreement
After going through the stressful process of buying a home, suffering the breakdown of a significant system or appliance like air conditioning or a refrigerator can provide a significant financial issue for most families. For the price of just a few hundred dollars, they know that if a system or appliance does break down, they will only have to pay a small service fee to have the item repaired or replaced in good time.
How a Home Warranty Service Agreement Protects Real Estate Professionals
For real estate professionals, applying a Home Warranty Service Agreement to a home they have on the market is an investment that pays off manifold. The homeowner doesn’t have to worry about the hassles of repair if something breaks during the sales process, which makes them an easier client to manage. The Home Warranty Service Agreement is very likely to tip the scales in the agent’s favor if it comes down to looking at equivalent properties with equivalent prices where one home has a warranty on it and one home doesn’t. Once again, the costs can be included in the final sales price at closing, removing the burden from the agent. However, even if the agent chooses to shoulder the costs of the Home Warranty Service Agreement, they most likely benefit. Even if the agent puts up $400 for a Home Warranty Service Agreement, homes with this coverage typically sell for more than $2,000 more than the asking price, which is up to four times the cost of the Home Warranty Service Agreement. Regardless of who pays for the Home Warranty Service Agreement, it’s comprehensive coverage that provides all parties in the transaction some peace of mind.
2-10 HBW offers comprehensive Systems and Appliances Home Warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.
